MANGO(SZ:300413) Huaxin Securities·2024-08-22 01:30Investment Rating - The report maintains a "Buy" rating for the company Mango TV [2][4]. Core Views - The report highlights that Mango TV's membership revenue has shown significant growth, while advertising revenue has slightly declined. The company is expected to benefit from a recovery in the advertising market and the successful implementation of its international expansion plan [2][4]. - The report emphasizes the company's strong content supply and its investment in technology, particularly AI, which is anticipated to enhance its cultural content development [3][4]. Summary by Sections Financial Performance - In the first half of 2024, Mango TV reported total revenue of 6.96 billion yuan, a year-on-year increase of 2.46%. However, the net profit attributable to shareholders decreased by 15.45% to 1.065 billion yuan [2]. - For Q2 2024, the company achieved total revenue of 3.64 billion yuan, reflecting a year-on-year decline of 1.52% but a quarter-on-quarter increase of 9.36% [2]. - Membership revenue reached 2.486 billion yuan, up 27% year-on-year, while advertising revenue fell by 4% to 1.721 billion yuan [2]. Content Development - In the first half of 2024, Mango TV launched 56 new variety shows, an increase of 17 compared to the same period in 2023. The company is also expanding its drama offerings with 17 new series and plans to launch at least 300 short dramas throughout the year [2][3]. - The report notes that the company is actively increasing its content investment, with over 80 dramas in reserve, which is expected to drive membership growth and enhance content-related e-commerce [2][3]. Future Projections - The report forecasts that Mango TV's revenue will reach 15.6 billion yuan in 2024, with net profit projected at 1.92 billion yuan. The earnings per share (EPS) are expected to be 1.03 yuan, with a price-to-earnings (P/E) ratio of 19.4 times [4][6]. - The company is expected to see a recovery in its main business driven by content supply and technological advancements, particularly through collaborations with platforms like Douyin [4][6].